InfoWars.com crusader and leading private media internet broadcaster, Alex Jones, interviews Harry S. Dent, economist, financial demographer, and famed author who has been successfully predicting with uncanny precision, nearly every major financial crisis, trend, and wealth cycle since the mid 1980's. His analysis of populations has proven to be a critical predictor of mass behavior, often decades ahead of time, based upon predictable purchasing patterns of people as they move through various life cycle stages. The baby boom bubble of the 1940's post-war America, has influenced nearly every single industry in the world as this massive population explosion, born between 1946-64, impacts the stock market, interest rates, housing booms and busts, retirement savings, politics, public policy, and urban planning, to mention only a few of the market segments to affecting by this wave of purchasing power that is now entering retirement and pulling billions of dollars OUT of the markets.
Nearly 80 million boomers will be retiring over the next 20 years. If each boomer pulls even $1000/mo from their retirement savings and another $1000/mo from old age security alone, assuming no extra health care emergencies, we can expect to see massive draw-downs on the stock markets of $160 billion per month! Simple supply/demand economics will tell even a high school student that prices for stocks, mutual funds, and RRSP's holdings will fall simply because of lifestyle spending by the biggest demographic segment in the economy. Once boomers begin seeing the inevitable drop in portfolio values, expect mass panic and migration to so-called "safe" interest bearing investments such as GIC's and term deposits. This excess demand will drive down interest rates to the point where virtually no growth can be expected on investment returns. In fact, add in the monetary devaluation caused be excessive central bank stimulus that is keeping the markets afloat since 2008, inflation will eventually result in negative real returns for investors around the world. What drove the market up for 20-30 years (excessive savings demand) will also drive the same market down for the next 20-30 years (excessive reverse savings demand). This is absolutely GUARANTEED to happen!
Listen carefully as Mr. Dent warns us about the impending collapse in the stock market, which he predicts will occur in 2014-15. The warnings that we at The Wealth Coaches have been teaching our clients about over the last couple of years are echoed by Mr. Dent in this thought-provoking, call to action. Although we agree with most of his comments, we differ somewhat on the issue of gold and silver, and how those two assets will protect Real (not nominal) wealth in the event of collapse. "Real money", may drop in nominal posted values, but what he fails to mention is the value of "purchasing power" of those assets when a return-to-barter system could ensue.
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